ASSESSING ECONOMIC VULNERABILITY IN THE EUROPEAN UNION

Globalization is a multivalent phenomenon with controversial effects on the economic, social and political spheres. The aim of this paper is to study the relationship between the KOF globalization index and the economic growth, in order to prove that countries with a low globalization indexes tend to be more vulnerable during crisis. In line with previous literature, we employ panel data analysis on an extended sample of European countries, covering a time span of 11 years, from 1999 to 2010. The results indicate the existence of a bidirectional relationship between the globalization index and a sustainable economic growth rate. Future research directions will include an emphasis on the relationship between the KOF globalization index and the political and social dimensions.